It looks like the Regions Bank team did not take much time off this summer, closing a series of loans across the country for senior living clients, including financing the development of a senior living community in a Seattle suburb last month. We’ll start with a couple of loans that took out construction debt.
First, to refinance a brand-new, two-story senior living community in a Cincinnati, Ohio suburb, Jack Boulder and Chris Honn arranged a $31.4 million bridge loan. The community features 28 independent living, 83 assisted living and 40 memory care units. It is owned by a joint venture that is primarily sponsored by a private developer/owner/operator based in the Midwest, and an institutional investor is the major preferred equity investor. The loan, which comes out to nearly $210,000 per unit, has a floating-rate term of three years with interest-only payments and a performance-based rate step down incentive.
Next, for a newly built senior living community in Lorton, Virginia (Washington, D.C. area), Messrs. Boulder and Honn secured a $25.1 million bridge loan. Another private, integrated developer/owner/operator based in the Southeast built the community to include 74 assisted living and 34 memory care units. They obtained a three-year initial term loan, with two years of interest only and a floating rate. Like the other transaction, this loan also came with a performance-based step down of the recourse. Regions plans to replace the loan with agency debt in the next several years.
We will profile the other transactions later this week.
